In-Service Distributions: A Smart Move for Pre-Retirees

What Is In-Service Distribution?

An in-service distribution allows you to withdraw or roll over funds from your company-sponsored 401(k) plan while you are still employed by the same company. Typically, 401(k) accounts restrict early withdrawals until age 59½. However, an in-service distribution provides a unique opportunity for financial flexibility.

Why Consider an In-Service Distribution?

1. Diversification of Assets:

Most 401(k) plans offer limited investment options, often geared toward the average investor and younger employees. By taking an in-service distribution, you gain the freedom to explore a wider range of investment options beyond your current retirement plan. Diversifying your assets across different classes reduces the risk of having all your retirement savings tied up in one basket.

2. Seizing Investment Opportunities:

Suppose you believe an investment option outside your 401(k) will yield higher returns than your current plan. An in-service distribution allows you to capitalize on that opportunity. You can strategically allocate funds to potentially enhance your overall portfolio performance.

3. Reducing Market Risk:

As retirement approaches, safeguarding your savings becomes crucial. By diversifying and reallocating funds, you mitigate market volatility risks. An in-service distribution lets you adjust your investment strategy based on your changing needs.

Guaranteed Retirement Income with a Fixed Indexed Annuity (FIA)

What Is a Fixed Indexed Annuity?

An FIA is a financial product that combines features of both fixed and variable annuities. It offers growth potential linked to a market index (such as the S&P 500) while providing downside protection. Your principal is protected from market losses, ensuring stability.

Lifetime Income Rider:

An FIA can include a lifetime income rider. This rider guarantees a steady stream of income during retirement, regardless of market fluctuations. You receive regular payments for life, providing peace of mind and financial security.

How It Works:

As you approach retirement, allocate a portion of your 401(k) funds to an FIA. The FIA grows based on the index performance (with a cap), and your principal remains secure. When you retire, activate the lifetime income rider to receive predictable income throughout your retirement years.

Hypothetical Lifetime Income Illustration:

Contract Year	Age	Premium	Annual Withdrawal
1	60	$200,000
2	61
3	62
4	63
5	64
6	65		$21,802
7	66		$21,802
8	67		$21,802
9	68		$21,802
10	69		$21,802
11	70		$21,802
12	71		$21,802
13	72		$21,802
14	73		$21,802
15	74		$21,802
16	75		$21,802
17	76		$21,802
18	77		$21,802
19	78		$21,802
20	79		$21,802
21	80		$21,802
22	81		$21,802
23	82		$21,802
24	83		$21,802
25	84		$21,802
26	85		$21,802

In Summary

• In-service distributions allow you to diversify your investments and seize opportunities.
• Consider allocating part of your 401(k) to an FIA with a lifetime income rider for guaranteed retirement income.

Secure Your Retirement Future with Retirement Benefits Inc! 

Are you nearing retirement age? Do not leave your financial well-being to chance. At Retirement Benefits Inc, we specialize in personalized retirement planning that empowers you to take control of your golden years.

In-Service Distributions: What they can do for you.

• Explore the flexibility of in-service distributions from your 401(k) plan.
• Diversify your investments, seize opportunities, and reduce market risk.
• It is time to optimize your retirement strategy!

Discover the Fixed Indexed Annuity Advantage:

• Our experts recommend a Fixed Indexed Annuity (FIA) for stability and growth.
• Enjoy market-linked returns without sacrificing principal security.
• Activate the lifetime income rider for guaranteed income during retirement.

Why Choose Retirement Benefits Inc?

• Tailored solutions for your unique needs.
• Expert guidance every step of the way.
• Secure your financial legacy with confidence.